GBP/USD Price Analysis: Retreats over 250 pips from daily tops, back closer to 1.1700 mark

• GBP/USD failed to capitalize on its early positive move to over one-week tops.
• The sharp intraday fall tests a descending trend-line resistance-turned-support.

The GBP/USD pair witnessed a dramatic intraday turnaround and has now retreated nearly 250 pips from over one-week tops, set earlier this Wednesday. The pair has now dropped back to a one-week-old descending trend-line resistance break-point, which is closely followed by 100-hour SMA.

Meanwhile, technical indicators on hourly charts have again started drifting into the negative territory. This comes on the back of already bearish oscillators on the daily chart, which points to the emergence of some fresh selling pressure and supports prospects for the resumption of the prior bearish trend.

Some follow-through weakness below the 1.1700 round-figure mark will reinforce the negative outlook and accelerate the fall further towards testing the next support near mid-1.1600s. The downward trajectory could further get extended and turn the pair vulnerable to break below the 1.1600 round-figure mark.

On the flip side, the 1.1800 mark now seems to act as immediate support, above which the pair might head towards testing the 1.1860-65 supply zone. Any subsequent strength might negate any bearish bias and prompt some aggressive short-covering move, lifting the pair back beyond the 1.1900 mark.

GBP/USD 1-hourly chart

Technical levels to watch